Federal and CO Tax Credit Questions

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dopplegl

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Sep 25, 2017
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Denver, CO
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#1
Hey there,

I tried looking through the forums, but I can't seem to find a direct answer. I also have a question I don't think has been posted before.

  1. Federal Tax Credit -- Will this only wipe out taxes OWED but will not be given as a rebate? I keep seeing conflicting answers on this, so is there someone with experience who can clarify this?
  2. Colorado Credit -- Same as above. I see that it can be signed over to a dealer, but Tesla won't do that. So do I just claim it on my taxes next year and get the rebate? Or is it just a credit to remove any taxes I might owe the state?
  3. This one is a bit more complex. I finally got my Model 3 in July, but 5 weeks later I was hit and my brand new car was totaled, so now I will need to buy a new one. Is the Federal and CO tax credit per PERSON or per VEHICLE. Since I will technically be buying two Model 3s now, do I qualify for TWO of the above credits, or just the one?
Thanks so much for any help with these!
 

judomc

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Jun 11, 2018
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Loveland, OH
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#2
Hey there,

I tried looking through the forums, but I can't seem to find a direct answer. I also have a question I don't think has been posted before.

  1. Federal Tax Credit -- Will this only wipe out taxes OWED but will not be given as a rebate? I keep seeing conflicting answers on this, so is there someone with experience who can clarify this?
  2. Colorado Credit -- Same as above. I see that it can be signed over to a dealer, but Tesla won't do that. So do I just claim it on my taxes next year and get the rebate? Or is it just a credit to remove any taxes I might owe the state?
  3. This one is a bit more complex. I finally got my Model 3 in July, but 5 weeks later I was hit and my brand new car was totaled, so now I will need to buy a new one. Is the Federal and CO tax credit per PERSON or per VEHICLE. Since I will technically be buying two Model 3s now, do I qualify for TWO of the above credits, or just the one?
Thanks so much for any help with these!
1. It should off set taxes owed.

No idea on the other 2...
 

garsh

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#3
Federal Tax Credit -- Will this only wipe out taxes OWED but will not be given as a rebate? I keep seeing conflicting answers on this, so is there someone with experience who can clarify this?
No. It counts against your entire tax liability for the year, not just on what you owe when you calculate your taxes.

More info: What does "tax liability" mean? Is that the amount I still owe?
Is the Federal and CO tax credit per PERSON or per VEHICLE.
For federal, it's per vehicle. But you have to have enough tax liability to cover both credits in order to see the full amount.
 

Ed Woodrick

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May 25, 2018
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Atlanta, GA
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#6
Incorrect. Only one $7500 credit per vehicle.
You can purchase multiple vehicles in a single year, and each one will qualify you for an additional $7500 credit.

Instructions for Form 8936 (2017)
Correct, and if you did not make enough to have $7500 in taxes, then you lose some credit. Can not be carried forward.

I've got 2 credits this year, so I have to owe at least $15,000 in taxes.
 

garsh

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#7
I've got 2 credits this year, so I have to owe at least $15,000 in taxes.
<pedantry>
So your *tax liability* for 2018 has to be at least $15,000
</pedantry>

Saying "how much you owe" is confusing, because you could mean "how much I still owe" after filing your taxes, instead of "how much I owed over the entire year".